The New South Wales government will now allow drivers to register their vehicles digitally, Minister for Customer Service and Digital Government Victor Dominello said.

According to Dominello, the new digital service was created as around 16% of registrations in the state were not renewed on time due to paperwork being damaged and misplaced.

The digital service will operate by allowing vehicle owners to opt into receiving electronic reminders about renewing their registration. It will also allow vehicle owners to access a digital copy of their registration. The service will be available through a MyServiceNSW account.

Customers who opt-in will receive reminder notifications six and two weeks before their registration expires and one day after via email, in their MyServiceNSW account and by push notifications in the Service NSW app.

Minister for Metropolitan Roads Natalie Ward said the service would save drivers' time and help reduce the 7.2 million paper renewals sent by Transport for NSW each year.

"This service has been piloted using more than 1000 vehicles to great success, with 95 per cent of drivers giving the opt-in process the thumbs up," Ward said.

Transitioning towards digital has been high on the state's agenda, with the New South Wales government in November announcing it commenced work on a new whole-of-government approach towards digital identity aimed at giving customers the option to use digital credentials for various licences, certifications, qualifications, and eligibility documents.

The ability to renew vehicle registrations digitally formed part of this work.

"The new digital services will be faster, more convenient, and less costly to use than paper or physical alternatives and will be less prone to forgery, misplacement, or theft than physical documents," Dominello said at the time.

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